In this article, we discuss the 5 best high dividend stocks under $50. If you want to read our detailed analysis of dividend stocks and their returns, go directly to read the 11 Best High Dividend Stocks Under $50.
5. Enterprise Products Partners L.P. (NYSE:EPD)
Number of Hedge Fund Holders: 28
Dividend Yield: 7.49%
Share Price as of October 14: $24.16
Gabriel Moreen of Mizuho recently noted that Enterprise Products Partners L.P. (NYSE:EPD), an American natural gas and crude oil pipeline company, is well-posed to benefit from a growth in crude oil prices. The firm lifted its price target on the stock to $29, while maintaining a Buy rating on the shares. The company stands fifth on our list of the best high dividend stocks under $50.
Enterprise Products Partners L.P. (NYSE:EPD) pays an annual dividend of $1.80 per share, yielding 7.49%. The company has increased its dividend by 6.7% in the past three years.
Of the 873 elite funds tracked by Insider Monkey, 28 hedge funds were bullish on Enterprise Products Partners L.P. (NYSE:EPD) in Q2 2021, compared with 26 in the previous quarter. These stakes have a value of over $246 million.
ClearBridge Investments mentioned Enterprise Products Partners L.P. (NYSE:EPD) in its Q1 2021 investor letter. Here is what the firm has to say:
“While reducing in health care and consumer staples, we increased our exposure to high-quality names in economically sensitive areas of the market. We added to low-cost, high-quality energy names (including) Enterprise Products Partners LP. We are positive on this company’s strong balance sheets, competitive positions and exposure to an economic recovery.”
4. Altria Group Inc (NYSE:MO)
Number of Hedge Fund Holders: 47
Dividend Yield: 7.50%
Share Price as of October 14: $48.32
Altria Group Inc (NYSE:MO) ranks fourth on our list of the best high dividend stocks under $50. On August 26, the company’s board announced a 5% growth in its quarterly dividend at $0.90 per share, paying an annual yield of 7.5%.
Altria Group Inc (NYSE:MO), an American tobacco company, reported solid quarterly earnings on July 29. The company’s EPS of $1.23 beat the market consensus by $0.06. Similarly, Altria Group Inc (NYSE:MO) generated revenue of $5.6 billion, beating the estimates by $240 million. Harris Associates is the company’s largest shareholder, with shares worth $243.3 million. Overall, 47 hedge funds tracked by Insider Monkey were bullish on Altria Group Inc (NYSE:MO) in Q2 2021, valued at $948.9 million. In the previous quarter, the number of hedge funds having stakes in the company stood at 38, which highlights the positive hedge fund sentiment in Q2.
In September, BofA lifted its price target on Altria Group Inc (NYSE:MO) to $54, while keeping a Buy rating on the shares. The stock gained 22.6% in the past year.
Broyhill Asset Management mentioned Altria Group Inc (NYSE:MO) in its Q2 2021 investor letter. Here is what the firm has to say:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
3. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 68
Dividend Yield: 8.22%
Share Price as of October 14: $25.69
AT&T Inc. (NYSE:T), a Delaware-based telecom company, is recently upgraded by KeyBanc to Sector Perform, with a $32 price target. The firm’s analyst appreciated the company for showing improved results in the past year and safe dividend payouts.
AT&T Inc. (NYSE:T) has a track record of 36 years of consistent dividend growth. The company currently pays an annual dividend of $2.08 per share, yielding 8.22%. As of Q2 2021, the number of hedge funds tracked by Insider Monkey having stakes in AT&T Inc. (NYSE:T) grew to 68 from 63 in the previous quarter. The total value of these stakes is over $2.8 billion.
Nelson Capital Management mentioned AT&T Inc. (NYSE:T) in its Q1 2021 investor letter. Here is what the firm has to say:
“Nelson Capital stayed busy in the first quarter, making several adjustments within our core portfolio. In the communication services sector, we sold AT&T (tkr: T). Over the years, AT&T has made several poor acquisitions, especially in the content realm, leaving the company saddled with debt and unable to change directions.”
2. Magellan Midstream Partners, L.P. (NYSE:MMP)
Number of Hedge Fund Holders: 13
Dividend Yield: 8.63%
Share Price as of October 14: $47.91
Magellan Midstream Partners, L.P. (NYSE:MMP) ranks second on our list of the best high dividend stocks under $50. This publicly traded partnership has a track record of 11 years of dividend growth. Currently, Magellan Midstream Partners, L.P. (NYSE:MMP) pays an annual dividend of $4.11 per share, yielding 8.63%.
683 Capital Partners is the largest shareholder of Magellan Midstream Partners, L.P. (NYSE:MMP), with shares worth $50.9 million. Overall, 13 hedge funds tracked by Insider Monkey reported having stakes in the company in Q2, compared with 14 in the previous quarter. The total value of these stakes is $89 million.
1. MPLX LP (NYSE:MPLX)
Number of Hedge Fund Holders: 11
Dividend Yield: 9.09%
Share Price as of October 14: $30.93
MPLX LP (NYSE:MPLX) is a master limited partnership (MLP) that operates midstream energy infrastructure. Due to the stability in the oil prices in recent months, the company is well-positioned to benefit. MPLX LP (NYSE:MPLX) tops our list of the best high dividend stocks under $50.
Zimmer Partners is the largest shareholder of MPLX LP (NYSE:MPLX) in Q2, with shares worth $51.2 million. In addition to this, 11 hedge funds tracked by Insider Monkey were bullish on the company in Q2, valued at $115.6 million. The number of hedge funds having stakes in MPLX LP (NYSE:MPLX) stood at 8 in the previous quarter, showing positive hedge fund sentiment.
MPLX LP (NYSE:MPLX) pays an annual dividend of $2.75 per share, yielding 9.09%. The company has increased its dividend by 24.3% in the past three years. In Q2 2021, MPLX LP (NYSE:MPLX) reported revenue of $2.4 billion, showcasing a 15.4% year-over-year growth. In October, Barclays lifted its price target on the stock to $33, while keeping an Overweight rating on the shares.
Miller/Howard Investments mentioned MPLX LP (NYSE:MPLX) in its Q1 2021 investor letter. Here is what the firm has to say:
“Lastly, we added MPLX LP (MPLX) in the with-MLP version. MLPX pays a high dividend and is cheap relative to similar pipeline companies… We increased our weight in MPLX LP (MPLX) which provides exposure to Permian volumes and northeast natural gas volumes. In addition, the company’s FCF yield was above the portfolio’s FCF yield.”
You can also take a look at 10 Best Dividend Paying Stocks to Buy Under $50 and 10 Best Dividend Stocks Under $20
